Marion County Building, 222 W. Center Street, Marion, Ohio

Board of Directors’ Meeting

December 19, 2017, 1:30 p.m.

Marion County Building, 222 W. Center Street, Marion, Ohio

Board Chairman Teresa Bemiller called the meeting to order at 1:36 p.m. Board members present were Jeff Benton, Barb Lewis, Gary Merrell, Thom Collier, Andy Appelfeller, Kerr Murray, Ken Stiverson,Warren Davis, Tom Whiston andTeresa Bemiller presiding. Also in attendance were Jenna Hicks, Director and Cheryl Corbin, Fiscal Administrator. Visitors in attendance included Gary Sims, Jeff Clark and Scott Knowles from Sims Brothers, Earl Linder from Mid-Ohio Sanitation, Lindsay Grimm, Morrow County Recycling, Doug Sams, Delaware General Health District, and Taylor Greely from Rumpke of Ohio.

Commissioner Appelfellermoved, seconded byCommissioner Murrayto approve the October 10, 2017 minutes.

Motion Carried.

Financial Report

Ms. Corbin gave the financial report for the months of October and November 2017.

Total revenue received in October was $137,042.70, total revenue received in November was $127,098.54.Total expenditures in October were $109,332.72 and total expenditures in November were $74,173.39.As of November 30, 2017, the unexpended balance was $1,668,048.40, the outstanding encumbrances were $148,581.94. The unencumbered cash balance was $1,519,466.46. Mrs. Corbin stated that the Market Development Fund remains at $125,000, for the Price Farms Organics OEPA Grant and expects that to be expended by June 30, 2018. As of November 30, 2017, 100% of the expected 2017 revenue has been received, and 87% of the expenditures have been spent, with no increase in total appropriations expected due to the increase in Drop-off services.

Commissioner Stiverson moved, seconded by Commissioner Merrell to approve the financial report as presented.

Motion Carried.

OLD BUSINESS

Mid-Ohio and Sims Brothers Presentations

Ms. Hicks gave a brief overview of the 10 year budget projections and various scenarios based on possible board decisions regarding Sims Brothers and Mid-Ohio. Ms. Hicks went over possible motions that would need to be made, depending on Board decisions.

Mr. Linder presented his budget and request for funding of $175,000 as presented in the board packet, asking for help funding part of a new recycling building. Mr. Linder answered questions posed by the board, and stated that he estimated the completion of the building by the end of 2018. Ms. Hicks clarified that Mr. Linder is not eligible to apply for an OEPA grant for the building as they only fund equipment. Mr. Linder agreed that the building was a starting point to allow him to then grow the operation by providing the space for additional equipment via funding requests to OEPA.

Commissioner Appelfeller moved, seconded by Commissioner Murray to approve the $175,000 grant request to Mid-Ohio Sanitation.

Discussion continued with how the District would be reimbursed if Mid-Ohio would go out of the recycling business in the next few years. Ms. Hicks stated that the contract will outline the earn-out of 90% reimbursement to the District if the operation were to be discontinued within the first year, 80% if at the second year, and continue to decrease 10% per year until the 10th year.

Commissioner Benton moved that he would prefer the Motion be amended to include an agreement of the 10% Earn-out each year, Commissioner Merrell seconded the motion.

Amendment Carried.

Motion Carried as Amended.

Mr. Sims presented his needs of $250,000 for the purchase of used equipment which would help increase productivity. Mr. Sims gathered cost requirements as requested at the prior meeting, and reached out to equipment experts who studied statistics of Sims current operation, including a 2-hour shut down daily to switch out recycle bins, and then stated that they could experience up to 50% efficiency with proposed equipment over current methods used. If the equipment were to be purchased new, it could be in excess of over half a million dollars. Mr. Sims stated that his costs in the project would be the cost of preparing the sight including any tear down of old equipment, and electrical costs. Mr. Sims stated that his intention is to charge a $40 processing fee (rather than the original proposed $80) per net ton for DKMM bins to be emptied and processed at Sims –starting January 1, 2018. Mr. Sims discussed statistics on a handout as presented. Mr. Sims stated that once the equipment was in place, and the increased efficiency turns out as projected, they would no longer have to charge the District the $40 per ton fee.

Discussion and questions continued with Mr. Clarkstating that they expect to purchase equipment around six-years old, and current equipment is 25 years old. Commissioner Bemiller clarified that the District would fund 100% of the cost of the equipment, and Mr. Clark stated that they project the cost of tear-down and rebuilding of equipment could cost them upwards of $15,000-$20,000. Mr. Sims stated that currently Sims Brothers is losing about $75,000 per year on the recycling side of the business, so they feel that they already have been putting their own money into the operation.

When asked to clarify the purpose of the $40 per ton fee, Mr. Sims stated that it would only be based on the DKMM containers brought in, and stated that he would not be charging the City of Delaware and the City of Marion the same fees, as it would increase the cost to the residents. Ms. Hicks verified that it was what all of the residents with curbside services dealt with, and the costs were increased in Southern Delaware (for example) when those services went out to bid, and that the District could not fund one or two of the curbside services, without expecting to fund them all – which the District would be out of funds in a matter of months if they did so.

Commissioner Benton clarified that Sims Brothers is stating that the Drop-off services provide 22% of the recycling received according to the Sims handout, yet Sims expects the District to pay for 100% of the cost of the equipment, suggesting that perhaps the City of Delaware and the City of Marion also contribute to this equipment cost.

Ms. Hicks stated at this time, she would prefer todiscontinue the discussion regarding curbside recycling, and focus solely on the cost of the drop-offs. Mr. Clark stated that the origination of this $40 per ton fee was due to the contamination costs incurred as a result of the drop-offs. Curbside has very little contamination, which is also why Sims didn’t feel that they should be charging the cities. Ms. Hicks stated that the 10% contamination rate that Sims is quoting is the lowest contamination rate in all of the District. Mr. Sims stated that he believes that the spot checks that the District has done in waste-audits is not a good way to determine contamination rates. He stated that the variables can make huge changes in the percentage rates. Mr. Sims stated that the 10% rate included the cleaner curbside tonnages, and that without the curbside, the rate could increase to 25%. Ms. Hicks reminded him that she had asked multiple times to do a waste audit on the Marion tonnages without success. Mr. Sims stated that it would be almost impossible, as they do not have the room for sorting as all of the recycling gets dropped into the big netted area.

Commissioner Merrell asked what would happen if the equipment was over or under the funding price. Mr. Sims verified that they feel confident that there is equipment out there at the funding request. He would not ask for more than they have, or more than they paid (if it were to be under the funding request). Mr. Sims stated they want to get the best that they can buy for the money. Commissioner Whiston recommended making a motion to the effect of funding the request for the cost of the equipment, up to a max of $250,000.

Commissioner Bemiller asked for confirmation that one of the answers to the questions asked was that Sims Brothers would leave DKMM to writing the grant to OEPA for funding of the equipment. Mr. Sims stated that he is willing to apply, but Ms. Hicks had to clarify that the responsibility would be up to Sims to apply for the funding for Sims. DKMM cannot apply for funding of equipment that DKMM does not own. DKMM’s role would be to sponsor Sims Brothers, were their grant be approved for funding. Mr. Sims stated that he would be willing to apply for the grant, with the District’s assistance.

The Staff of Sims Brothers and Mid-Ohio Sanitation offered to step outside of the meeting room to allow the board to discuss the grant funding request.

Commissioner Whiston stated that he believes before any decision were to be made, that the board should wait until it is determined whether or not Sims Brothers receives any grant funding from OEPA. Commissioner Bemiller stated that she continues to believe that Sims Brothers should have some investment of their own in the equipment, whether it’s a District grant, or in sharing the match to an OEPA grant.

Commissioner Lewis stated that she is still unsure how the District may be subsidizing the Marion and Delaware City curbsides when the southern Delaware curbsides are paid by the residents. Ms. Hicks stated that she believes, based on what was presented, that the $40 per ton charged to the District for Drop-off recycling would also be helping to pay for the curbside subsidies.

Commissioner Collier asked if the meeting were currently in Executive Session for contract negation discussion. Commissioner Bemiller asked if there was a motion to go into Executive Session for the purpose of discussing contract terms (no motion was made).

Commissioner Whiston pointed out that the Board just approved grant funding for Mid-Ohio, with Mid-Ohio providing 72% of the cost of the building themselves. Commissioner Whiston stated that Mid-Ohio could then have a point in saying they wanted to request more in funding if we fund 100% of the Sim’s project.

Discussion continued on options to help Sims Brothers, while finding a solution to having the curbside services and Sims Brothers help contribute to the project.

Taylor from Rumpke stood up to give a public comment at this point, and she offered to meet with the board to present options that Rumpke could provide to assist Sims in costs as well as to discuss what Rumpke projects for cost increases for Delaware and Knox Counties in the future. Comments from the board included the lack of service received from Rumpke in the past, included the discontinuation of glass recycling bins and a refusal from Andy Rumpke to meet with the board as requested. Taylor stated that her company acknowledges and regrets the treatment to the district from personnel, and that she would like to offer to meet with the board moving forward.

Ms. Hicks reminded the board that the board will be going out to bid again in 2018, which is why these decisions are so important, because a determination will need to be made soon on what direction the board chooses to make.

The Board agreed to hold off on a decision about Sims until they were able to meet with Rumpke about potential future costs for Delaware and Knox county drop-off services. The Board also discussed how they would support Sims upon receiving an OEPA grant, and any funds matched by the District.

Commissioner Collier moved, seconded by Commissioner Whiston to support and sponsor Sims Brothers in receiving a $500,000 equipment OEPA grant, the District would pay half of the match required by OEPA, while Sims brothers would pay the other half of the match (The District paying 25% of the grant project up to a maximum of $125,000).

Discussion by the board continued to be the concern that the Board would expect the City of Delaware and the City of Marion to also begin contributing toward the cost of processing, and not rely on the District to fund this expense 100%.

On the Roll Call

Commissioner Merrell YesCommissioner LewisNo

Commissioner BentonNoCommissioner CollierYes

Commissioner AppelfellerNoCommissioner MurrayNo

Commissioner StiversonNoCommissioner DavisNo

Commissioner WhistonYesCommissioner BemillerYes

Motion Failed.

Commissioner Bemiller tasked Ms. Hicks with setting up a meeting with Rumpke prior to the February Board meeting. Commissioner Bemiller asked to have Sims Brothers staff come back in the room where she advised them that they would be tabling any decision about Sims Brothers until the Board can meet with Rumpke. This will be to gather more information and try to get firmer numbers from Rumpke drop-off services in Delaware and Knox counties, so that the Board has the ability to make any decision based on more accurate forecasting.

NEW BUSINESS

Election of Officers

Commissioner Lewis moved, seconded by Commissioner Murray to nominate Commissioner Whiston for Chair and Commissioner Appelfeller for Vice Chair.

Commissioner Whiston stated that he would be honored to serve as long as he is able.

Motion Carried.

Sale of Ford Escape and Bidding Process

Ms. Corbin stated that the Ford Escape owned by the DKMM district has become a liability as time goes on due to the inactivity of its use, and the repairs that have had to be made over the past couple of years as a result of the inactivity. Also of concern, with Ms. Hicks and Ms. Corbin both living outside of the county, it becomes a logistic issue to plan how to use the vehicle when most meetings are either first thing in the morning or last thing in the afternoon. Ms. Corbin advised the board that should the board decide to sell the vehicle, Knox County has agreed to enter into an agreement where DKMM staff would have permission to use their vehicle when necessary – generally related to the Special Collection events. Ms. Corbin also advised the Board that Knox County is also interested in bidding on/purchasing the vehicle, as situations have occurred that have left them short on vehicles.

Commissioner Merrell moved, seconded by Commissioner Stiverson to transfer the ownership of the 2010 Ford Escape to Knox County for $7,000.

Motion Carried.

Approval of County Vehicle Agreement

Commissioner Stiverson moved, seconded by Commissioner Lewis to enter into an agreement with Knox County for the purpose of a Shared Vehicle Agreement paying Knox County a per diem equal to the IRS reimbursement rate as presented, as well as incur any liability during District use.

Motion Carried.

Rate Changes for Special Collection Events

Ms. Hicks made a recommendation to the Board to consider a rate increase at our Collection events. Due to contract increases by the Special Collection vendors, the residents will incur an increase for utilizing the events. Ms. Hicks also advised the board that our tire vendor will no longer accept tires over the 19 inch size due to liability issues. Ms. Hicks stated that the District will continue to have occasional Ag tire events where loading equipment would be made available for the tire vendors.

Commissioner Whiston moved, seconded by Commissioner Lewis to approve the rate changes for tire collection at the Special Collection events to $4 per 19 inch tire and to approve the rate change for TV collection to $20 per TV.

Motion Carried.

2018 Budget

Commissioner Bemiller stated that there’s not much change to the 2018 budget from 2017, with a few items of note. Among those items, staff salaries include a 3% raise, the same as the Recycling Coordinator’s based on their salaries (overall a 1.5% line item increase), there is no budget listed for recycling assistance as the Budget Committee felt that it should be added once the Board decided on what action will be taken with Sims and Mid-Ohio Sanitation. Professional Services will be decreased due to the Plan winding down, and Recycling Drop-offs has an increase due to anticipated service increases.

Commissioner Merrell moved, seconded by Commissioner Appelfeller to approve the 2018 Budget as discussed with a 3% salary increase for staff and with the change as noted of the $175,000 to the Recycling Assistance program for Mid-Ohio Sanitation and Recycling’s project.

Motion Carried.

Health Department Contact

Commissioner Lewis moved, seconded by Commissioner Collier to approve the Health Department Contract as presented.

Motion Carried.

CRLPO Contract Approval

Commissioner Whiston moved, seconded by Commissioner Stiverson to approve the CRLPO contract as presented.

Motion Carried.

Park Contract Approval

Commissioner Merrell moved, seconded by Commissioner Stiverson to approve the Park Contract as presented.

Motion Carried.

OEPA Grant Sponsorship Update

Ms. Hicks stated that the Cardinal Shooting Center’s OEPA grant may not happen at this time, the District is not sure why, but the Board’s action was to sponsor the grant, so she wanted to give the update.

Ms. Hicks mentioned that Park Enterprise wants to apply for an OEPA Market Development grant to purchase a mechanical bagger for their mulch, and wants DKMM to sponsor them.